Billionaires like Elon Musk, Bill Gates, and Jamie Dimon, to name a few, are predicting an imminent recession in the United States before the end of next year. Wall Street is also increasingly confident that a recession will hit the U.S. soon. For example, Morgan Stanley chief James Gorman revised his expectations of a looming economic contraction and joined in on the recession warnings while speaking at a Morgan Stanley investors panel.
“It’s possible we will go into a recession, obviously. There are 50-50 odds now,” Gorman said.
Tesla CEO and billionaire Elon Musk said the U.S. economy would likely face a recession in the near term in an interview with Bloomberg on Tuesday. Musk echoes concerns of other top business leaders and financial institutions raised following the Federal Reserve’s recent, steeper-than-expected hike in key interest rates.
Forbes reported on July 17, 2022, that top business leaders are buying into looming recession fears. A survey published found that 76.1% of chief executives believe there will be a recession in their company’s primary area of operations before the end of 2023.
- The survey conducted by the Conference Board business research group among 750 CEOs and other C-suite executives found that 15% of CEOs believe there already is a recession, and 43.3% think there will be a recession by the end of 2022.
- Another 17.8% predict a recession by the end of 2023.
- Just 19.1% of CEOs said they don’t expect a recession in the next 2-3 years.
Just days after the Federal Reserve announced a steep hike in interest rates in an effort to control surprisingly high inflation numbers, Japanese investment bank Nomura joined Deutsche Bank and Morgan Stanley to predict an oncoming recession in the U.S. economy sometime later this year.
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Despite projections by economists, in an interview last week, Biden insisted that a recession was not “inevitable,” adding that the U.S. is in a “stronger position” than any other country to fight inflation. Nevertheless, Biden said the American people should not “believe a warning” and urged them to wait and see whose prediction was correct.
White House Press Secretary Karine Jean-Pierre sounded an awful like her boss Joe Biden today as she thumbed through her book of pre-determined responses to media questions.
The White House reporter asks: “The President said last week that there’s no inevitability around a recession, but there is a greater deal of market concern about exactly that.”
Karine Jean-Pierre responds: So, the way that we see this — and you’ve heard us talk about this that we’re in a moment of transition. We have seen — we are in a unique situation with our — with the historical gains with our economy. The way that we see it, this unemployment rate has held steady at 3.6, which is also near historic lows; business and investment remain strong; household balance sheets remain strong.”
So, we see that the strengths that we — our economic strength that we have seen from this past year from the action that the President has taken with the American Rescue Plan, with what we have seen with the historical gains, that is going to help us deal with a recession.
Right now — we don’t see a recession right now. That is not — we’re not in a recession right now. Right now, we’re in a transition where we will — we are going to go into a place of stable and steady growth, and that’s going to be — that’s going to be our focus.